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COLEMAN: Main Street Monday: Five U.S. States That Rival the World’s Largest Economies

July 8, 2025

Michigan Business Network

Small Business Lender News of the Day for Monday, July 7, 2025

As a proud native Californian, I’ll admit I’m quick to tout my home state’s place among the world’s top five economic powerhouses. That said, hats off to Texas, New York, Florida, and Illinois—each deserves recognition for their economic strength.

I created the chart below to highlight just how impressive these states are—and how powerful the U.S. economy remains as we head into our nation’s 250th birthday next year. This strength translates into real opportunity for America’s small business entrepreneurs and the SBA lenders that provide the capital.

Bob Coleman

Founder & Publisher

TODAY’S HEADLINES

Main Street Monday: Five U.S. States That Rival the World’s Largest Economies

When you think of the world’s largest economies, countries like China, Germany, and Japan come to mind. But what if I told you that several U.S. states individually rival or exceed the economic output of entire nations?

Here’s a breakdown of the top five U.S. states whose economies would place them among the world’s elite if they were countries—an eye-opener for SBA lenders working with businesses in these powerhouse regions.

#1 California – The 4th Largest Economy in the World

With a 2024 GDP of approximately $4.1 trillion, California has officially surpassed Japan to become the 4th-largest economy globally—behind only the U.S., China, and Germany. From Silicon Valley to Hollywood to the Central Valley’s agriculture, the Golden State offers unmatched economic diversity.

Lender Takeaway: California-based small businesses benefit from massive capital flows, infrastructure, and global export access. High costs of living and regulation, however, remain underwriting considerations.

#2 Texas – A Top Ten Global Player at #9

Texas, with a GDP of $2.7 trillion, would place 9th in the world if ranked alongside countries. Its economy thrives on energy, technology, and a pro-business environment, with no state income tax and robust population growth.

Lender Takeaway: Texas continues to be a magnet for franchise expansion and SBA borrowers, particularly in manufacturing, logistics, and healthcare.

#3 New York – Wall Street Center of the Universe Ranks #11

Home to the global financial center, New York State posted a 2024 GDP of $2.3 trillion, which also lands it in the 8th spot globally, tied with or just behind Texas. Its economy is driven by finance, media, real estate, and tourism.

Lender Takeaway: Underwriting in New York demands attention to industry concentration and real estate values. Urban borrowers may benefit from strong investor ecosystems and international trade exposure.

#4 Florida – The Sunshine State Shines Bright at #15

With a GDP of $1.7 trillion, Florida would rank as the 15th-largest economy in the world, ahead of Spain. Tourism, aerospace, and international trade (especially with Latin America) are key drivers.

Lender Takeaway: Florida’s rapid population growth and aging demographics present unique opportunities for SBA lending in sectors like healthcare, construction, and hospitality.

#5 Illinois – Midwest Muscle

Illinois rounds out the top five with a GDP of $1.08 trillion, making its economy comparable to Turkey. The Chicago metro area dominates, but the state also boasts strong manufacturing, logistics, and food processing sectors.

Lender Takeaway: Chicago’s infrastructure and economic base make it a top-tier SBA market.

Why This Matters for SBA Lenders

These states aren’t just big players in the U.S.—they are economic giants on the world stage. And for lenders on Main Street, that means more opportunity.

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